Answer:
Explanation:
In order to calculate he present value or worth of this bond we woulñd have to make the following calculations:
Face value (FV) $ 1,000.00
Coupon rate 8.50%
Number of compounding periods per year 2
Interest per period (PMT) $ 42.50
Number of years to maturity 8
Number of compounding periods till maturity (NPER) 16
Market rate of return/Required rate of return per period (RATE) 5.00%
Therefore, Bond price= PV(RATE,NPER,PMT,FV)*-1
Bond present worth=$918.72
The present value or worth of this bond is $918.72
Havent you played monoply?
Answer: a) Eleanor picks Left as Dominant strategy
b) Both pick LEFT at Nash Equilibrium.
Explanation:
The Dominant strategy is that strategy that once embarked on, gives the highest benefit irrespective of what the other player does.
The Dominant strategy therefore is for ELEANOR to pick LEFT. Should Eleanor pick left, they stand a chance to gain 5 if Darnel picks Left as well and 3 if Darnel picks Right. This is better than picking Right because there Eleanor has a chance of a Payoff of 2.
The Nash Equilibrium of a game is the point where both players are at their best alternative meaning that it is beneficial to both of them to remain where they are.
With Eleanor always picking Left, it would be beneficial for Darnel to pick Left as well and make a Payoff of 6 which is the highest they can make with Eleanor picking Left.
The Nash equilibrium in this game is as follows: DARNEL chooses LEFT and ELEANOR chooses LEFT.
Answer:
reenter the banking system
rise
Explanation:
Coinstar is a kind of business where you earn in the form of coins and that the coins are convertible into money, now that it creates extra actual money there will be an addition in the form of money, and that the money withdrawn from bank shall reenter the banks again.
Also this entire thing will increase the money multiplier.
As because the money transactions will increase, there will be an increase in the multiplier of money.
Answer:
The present value of the dividends to be paid out over the next six years if the required rate of return is 15 percent is $6.57
Explanation:
Solution:
Given that
The present value =∑ ⁿ t=1 cf/ (1 +r)t
where cf= cash flow
r =the required rate of return
t = the number of years
Now
The present value will be:
cf₁/(1+r)^1 + cf₂/(1 +)^2 + cf₃/(1+r)3 + cf₄/(1 +r)^4) + cf₅/(1 +r)^5 + cf₆/(1+r)^6
Hence,
cf₁, cf₂ cf₃ = 0 as the firm does not expect to pay dividend in the next three years
Note: Kindly find an attached document of the part of the solution to this given question
